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Work on Rs 15-bn power project in AP to begin in Sept

Syed Amin Jafri in Hyderabad

Work on the Chinese-assisted Rs 15-billion Rayalaseema Thermal Power Project Stage-II is slated to commence in September 2001. The first 210 MW unit of the 2 x 210 MW project is expected to be commissioned by December 2003.

The RTPP stage-II at Muddanur is being set up by China National Machinery & Equipment Import and Export Corporation, a government company of People's Republic of China, with a unique 100 per cent debt finance on build and transfer basis.

The Exim Bank of China is providing suppliers' credit of $270 million to CMEC for the project. The estimated project cost of Rs 15 billion is very economic and works out to Rs 36 million per MW capacity.

A high-level Chinese delegation, comprising top officials of Exim Bank of China and CMEC, which is visiting Andhra Pradesh, called on Andhra Pradesh Chief Minister N Chandrababu Naidu in Hyderabad on Friday. The team briefed him on the progress of the project assisted by them.

The CMEC officials assured the chief minister that they would take up the work and complete the project within a shorter period.

They have already started designing of engineering works on the project and are hopeful to commence works at the site from September 2001.

The first unit would be commissioned by December 2003 and the second unit by March 2004, they pointed out.

On completion of the project, the state-owned AP Power Generation Corporation would take over the power station. The erection, procurement and commissioning contracts were signed between APGenco and CMEC on March 7, this year.

The chief minister assured all cooperation to the CMEC in its efforts to build a model power house of international standards and urged the CMEC to complete the project earlier than originally planned. "This power house must be a trend-setter for its cost-effectiveness and quality of construction," he said.

Chandrababu Naidu said that this project is located in the drought-prone and backward Rayalaseema region with large agricultural potential and helps speedy development of this region.

The first phase of Rayalaseema Thermal Power Project Stage-I, comprising 2 x 210 MW, was set up with loan assistance of Asian Development Bank. With the completion of stage-II, the generating capacity at Muddanur will go up to 840 MW.

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